If US Net Exports Are Negative, Then Net Capital Outflow Is

question 39

Multiple Choice

If U.S. net exports are negative, then net capital outflow is

• A)positive, so foreign assets bought by Americans are greater than American assets bought by foreigners.
• B)positive, so American assets bought by foreigners are greater than foreign assets bought by Americans.
• C)negative, so foreign assets bought by Americans are greater than American assets bought by foreigners.
• D)negative, so American assets bought by foreigners are greater than foreign assets bought by Americans.

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Definitions:

Inelastic

Refers to a market for a product or service that is price insensitive; that is, relatively small changes in price will not generate large changes in the quantity demanded.

Products

Items or services offered by a business to customers, which can include physical goods, services, and digital products.

Perceptions of Value

How consumers view the worth of a product or service based on its perceived benefits versus the cost, which influences their purchasing decisions.

Effective Pricing

The strategy of setting a product's price based on the value perceived by the customer, market demand, and competition, aiming to maximize both profit and customer satisfaction.